what's likely to happen...

originalname

This is an impossible question to answer but....what's likely to happen with the mortgage rate?

The mortgages we're interested in are around 3.24 to 3.5 % trackers and wondered if it is likely that there are going to be large sudden rate increases or if you think the rate will slowly creep up over the next, i don't know, say 5 to 10 years?

Thanks

originalname

Ps I've searched the forums but can't seem to find out whether child benefit is taken into account as income? (not the tax/ child tax credits) the kiddies are 3 and 15 months. Anyone know? Or is this specific to each bank?

Conrad

Hi

A number of lenders can consider cb. Nationwide for example.
The Bank Of England Govenor went out of his way recently to say he doesn't know what will happen tomorrow let alone in 2 years time, and that anyone claiming they do know is a fool.

Common sense suggests rates will rise steadily, that's about all any rational person could conclude.

I'm on a tracker but I do get nervous about the inevitable rises. For myself I will probably fix when the Bank Of England drop a hint. I did this 3 years ago just before rates began to rise, my decision prompted by a brief sound bite from Mervyn - the BOE govenor. So follow the quality news, in particular radio 4 news - it's 'well' peaceful anyway and beats all the noise of most radio stations.

ILW

Conrad wrote: »

Hi

.in particular radio 4 news - it's 'well' peaceful anyway noise of most radio .

Yea, innit bro.

Peelerfart

originalname wrote: »

Ps I've searched the forums but can't seem to find out whether child benefit is taken into account as income? (not the tax/ child tax credits) the kiddies are 3 and 15 months. Anyone know? Or is this specific to each bank?

Not really any of my business but if you need to count child benefit in as income ,I think you might be overstretching - IMHO !

Mrs_Bumble

I do agree that child benefit isn't really an income and should be regarded as something separate. I believe that Nationwide have changed their criteria in relation to child benefit recently and don't accept it?

So the question should be would your household income manage if the interest rates do increase, how would you manage?

originalname

Thanks everyone.
Was just a query about the child benefit as genuinely didn't have idea about it as last time we searched for mortgages we didn't have children and have been doing calculations without taking it into account.
The mortgage we're looking at is 4.5 times my hubby's sole wage (I'm at home with the kiddies and wasn't planning on returning to work until they're at fulltime school as we don't have childcare)
We have about a 47% deposit and hubby's in a secure job. The mortgage repayments at 3.5% is affordable and even on one wage at 5 or 6% is manageable (but depressing) but if the rates went crazy upto 8% we'd be struggling.
My friend wants me to provide childcare for her baby (unknown income) and we could easily provide DIY stabling for one horse for about £100 a month (new house has exisiting stables, paddock etc so no start up costs). Albeit both incomes could be irregular but being realistic I think it would fetch in £2000 a year after costs etc. However, if we were to get our own pony as planned then this income would be vastly reduced.
Plus the new house is a similar size with similar costs but we'd be able to increase our 'the good life' plans and grow more veg, keep more chickens and keep a (well planned)couple of pigs for meat which would reduce our shopping bills a little.
I think basically we're a bit scared of increasing our mortgage in these uncertain times on just the one wage and using all our equity.
Are we better to wait out this rocky time and see how things improve or is now an acceptable time to move?
Do you think rates will eventually rise to around the 5% mark again?

originalname

sounds like we're loaded with stables and pigs etc ...we're not this is our first step up to a normal sized house with a little bit of extra land....

purplebuzz

originalname wrote: »

... and we could easily provide DIY stabling for one horse for about £100 a month (new house has exisiting stables, paddock etc so no start up costs).

Depending on where you are in the country, this seems a bit cheap. DIY is approx £40pw down my way.